December 23 will be crucial for Pakistan, debt-hit Pakistan prepares to sell national airline PIA

ISLAMABAD: Pakistan is now in a desperate situation where it needs to take new loans just to repay old ones. With its debt crisis worsening, the country is preparing to auction its national airline, Pakistan International Airlines (PIA). According to news agencies and local media reports, the auction is scheduled to take place on the 23rd of this month.

Selling PIA through an auction is a crucial step for Pakistan. The country has taken loans from the IMF more than 20 times and is currently the fifth-largest borrower of the International Monetary Fund. Reports suggest that four companies have already shown interest in acquiring PIA. This will be Pakistan’s first major privatisation move in nearly two decades.

Through this privatisation, Pakistan aims to raise 86 billion rupees. About 15% of the revenue will go to the government, while the rest will stay within the company. Once considered a symbol of national pride, PIA began to decline after 2020. Following a series of incidents that affected the airline’s credibility, the European Union Aviation Safety Agency banned PIA flights from entering its airspace, worsening the airline’s troubles.